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With the Equifax hack settlement promises coming out and the recent Capital One hack, many people are wondering how safe their credit is. Even if your credit hasn't already been leaked, it may be a good idea to freeze your credit as a preventative measure. Fortunately, after the Equifax incident, a federal law was passed to make freezing your credit free.
Why Should You Freeze Your Credit?
It seems like credit breaches are becoming more and more common and each time millions of people can be affected. Freezing your credit protects you by making sure no one can open credit in your name. It does not hurt your credit score, it simply blocks new applications.
When Should You Not Freeze Your Credit?
If you are trying to open a new credit card or thinking about applying for a loan soon.
- Fortunately, federal law states that if a request for a temporary or permanent unfreezing of your credit is made online or by phone it must be unfrozen within one hour. So, if you freeze it and then want to apply for credit later, it should be quick to undo.
Things to Keep in Mind
- To freeze your credit, you need to contact each of the three credit bureaus (follow the link below to the FTC website).
- Parents can freeze credit for kids under 16.
- Freezing your credit only stops someone from opening a new account in your name, current account information is still susceptible to fraud so keep an eye on currently open credit accounts.
More experts are recommending freezing your credit to give yourself a better chance at protection from fraud. Weigh the options of convenience versus security and decide for yourself.
Resources:
https://www.consumer.ftc.gov/articles/0497-credit-freeze-faqs